Expert warns against using PIPs as last resort

Employers and human resources professionals should only resort to performance improvement plans (PIPs) as a last resort, according to one expert.

Monika Krosel, senior HR director and operations lead at Pivotal Outsourced HR Management, cautions that misuse of the tool is costing employers the very employees they are trying to retain.

"A lot of times, what happens is managers wait until things get really bad to a point of the PIP being a last resort, essentially. And then it becomes more of a negative process, a precursor to termination," she tells Canadian HR Reporter.

Krosel argues that early, informal intervention — framed as an observation rather than a reprimand — is far more effective than allowing problems to compound. If an employee is missing deadlines, she recommends addressing it after the first or second instance. 

"Pull them aside right away, have a chat right away and say — rather than being accusatory — ‘I've noticed, you haven't been able to meet a couple of deadlines,’ and then ask them what's going on, let them speak, let them tell you," she says.

Krosel notes that a brief follow-up email documenting what was discussed, including agreed-upon expectations and a check-in date, is often sufficient early-stage documentation.

When it comes to performance reviews, a one-off assessment each year is not enough, one expert previously told Canadian HR Reporter.

What is a PIP?

A performance improvement plan is a formal, documented process that identifies the gap between an employee's current performance and the standard required, and sets out a roadmap — with measurable goals, timelines and support resources — for closing it.

According to Pivotal Solutions' published guidance on the topic, the intent of a PIP is not disciplinary. "When used correctly, a PIP isn't a punishment — it's an investment," the company states, characterising the tool as a retention strategy rather than an exit strategy.

Krosel echoes that framing, saying the PIP should give employees a genuine opportunity to turn things around. "It outlines clear expectations, timelines, check-ins, and resources," she says. "It really gives that person a fair chance to succeed."

She also stressed that PIPs should be treated as living documents rather than static ones.

"You pull it up during your check-ins, you outline progress, you're giving feedback throughout," she says, recommending that plans include a dedicated progress section updated collaboratively at each meeting.

A lot of employees see PIPs as a warning, while only a few recognize it as a structured chance to improve and keep their role, according to a previous report.

Best practices for employers

When a formal PIP does become necessary, Krosel recommends that HR, the direct manager, and the employee all be involved in developing it. 

"When they're involved, when they're reflective over what they're doing, when they're able to come up with solutions, then they are more likely to succeed rather than it just being dictated to them," she says.

On timelines, Krosel says there is no one-size-fits-all answer, with the appropriate duration depending on the complexity of the issue and its impact on the business. However, she views six months as a practical upper limit in most cases. 

"If somebody is not making improvements within that time frame, you can't keep going on indefinitely," she says. Pivotal Solutions' published guidance suggests most PIPs run between 30 and 90 days.

The HR firm also notes: “Managers play a critical role here. A PIP should never be a ‘gotcha’ moment. It should be a collaborative process where the employee feels supported rather than set up to fail.”

Krosel's overarching advice is to keep the process specific, measurable and achievable — and to ensure that expectations are within the employee's control.

Pivotal provides HR services to small and mid-sized businesses across Canada, giving organisations access to a dedicated team of more than 30 HR professionals without the cost of a full in-house department.